With the economy in the state it's in and home prices plunging throughout the United States, many more people have found that the equity in their home no longer exists. Without that equity, some lenders will not allow you to refinance. Job losses continue to be in the news and with that, people are finding it hard to stay up to date on their mortgage. The loan modification program didn't turn out how it was designed to work and now people are running out of options.
There are rumors of another big wave of foreclosures will hit our areas soon, you don't have to be one of them. If you are upside down on your mortgage, you can contact a REALTOR in your area, who is Short sale certified to assist you.
A short sale is a sale of your home which the sale proceeds fall short of the balance owed on the home loan. The lender can decide to let you sell the home at a moderate loss instead of defaulting. In some states this does not relieve you from any obligation to pay the remaining balance or and tax responsibilities. As I'm a REALTOR and not a CPA, you would need to contact a CPA in your state to give you more clarification and guidance.
A short sale also is easier on your credit score than a foreclosure.
I know it's difficult to look and ask for help in trying times but if you are upside down on your mortgage or know a person that can use our help, have them contact their local REALTOR. If you don't know a REALTOR in your area I would be happy to have one contact you.
Your San Antonio REALTOR,